On January 11, 2021, the Development and Reform Commission of Ningxia Autonomous Region issued a letter on soliciting opinions on the “Guiding Opinions on Accelerating the Healthy and Orderly Development of Energy Storage in the Autonomous Region (Draft for Solicitation of Comments)”. According to opinions, Ningxia will rely on the advantages of clean energy accumulation to promote the development of the energy storage industry, and first carry out the construction of energy storage facilities in Ningdong, Wuzhong, and Zhongwei regions where new energy is rich. Build a "new energy + energy storage" demonstration application project, and promote its application in the entire region; during the "14th Five-Year Plan" period, energy storage facilities shall be based on the principle of not less than 10% of the installed capacity of new energy and more than 2 hours of continuous energy storage. Configured year by year; explore the business model of energy storage facilities operation and cultivate a number of competitive market players; the development of the energy storage industry has entered commercial applications, and the key role of energy storage in the transformation of the energy system has become fully apparent.

The following is the full text of the policy:

All relevant companies:

In order to promote the integrated and supporting development of the clean energy industry in our district, earnestly implement the spirit of the "Guiding Opinions (Draft for Solicitation of Comments) of the National Development and Reform Commission and the National Energy Administration on the Development of "Integration of Wind, Water, Fire and Storage" and "Integration of Source, Network and Load" In order to effectively promote the high-quality development of energy in our region, the autonomous region’s clean energy industry integrated supporting development work class has studied and drafted the "Guiding Opinions on Accelerating the Healthy and Orderly Development of Energy Storage in the Autonomous Region (Draft for Solicitation of Comments)". For comments and suggestions, please submit relevant comments to the Energy Development Department of the Commission in official documents before January 15, 2021.

Appendix

Guiding Opinions on Accelerating the Healthy and Orderly Development of Energy Storage in the Autonomous Region (Draft for Solicitation of Comments)

In order to earnestly implement the "Guiding Opinions on Promoting the Development of Energy Storage Technology and Industry" (Fagai Energy [2017] No. 1701) and the "Notice of the National Energy Administration on Printing and Distributing the "Work Plan for Improving the Compensation (Market) Mechanism for Power Auxiliary Services"" (Guonengfa Supervision [2017] No. 67), "Guiding Opinions (Draft for Solicitation of Comments) of the National Development and Reform Commission and the National Energy Administration on the Development of "Integration of Wind, Solar, Water and Fire Storage" and "Integration of Source, Network and Load" (Draft for Solicitation of Comments), Accelerate the development of energy storage technology and industry in the autonomous region, effectively increase the peak-shaving reserve capacity of the power system, promote the consumption of new energy in our region, and build a “clean, low-carbon, safe and efficient” modern energy industry system. These guidelines are hereby formulated.

1. General requirements

(1) Guiding ideology

Guided by General Secretary Xi Jinping’s Thought on Socialism with Chinese Characteristics for a New Era, thoroughly implement the spirit of the 19th National Congress of the Communist Party of China and General Secretary Xi Jinping’s visit to Nanjing and the spirit of important speeches at the Symposium on Ecological Protection and High-Quality Development of the Yellow River Basin. The development pace of the energy storage industry, the use of our region’s resource advantages, the development of low-carbon green industries as a leading project to promote high-quality development and economic transformation and upgrading in our region, and build a strong innovation capability, high industrial level, complete supporting facilities, and leading demonstration applications Energy storage industry system.

(2) Basic principles

Government guidance and corporate participation. Strengthen the top-level design, increase policy support, and study and introduce supporting measures. Strengthen guidance and information services, promote the reasonable opening of energy storage facilities, and encourage diversified market players to participate in market competition fairly.

Innovation leads, demonstration first. Create an open and inclusive innovation environment and encourage various forms of technology, mechanism and business model innovation. Give full play to the pilot role of the demonstration project, promote the first trial of new energy storage technologies and new models, and create a good atmosphere for innovation.

Market-led and reform boosted. Give full play to the decisive role of the market in resource allocation and encourage social capital to enter the field of energy storage. Combined with the process of power system reform, gradually establish and improve the price formation mechanism of power market-oriented transactions and flexible resources, restore the attributes of energy commodities, and strive to break the system and mechanism obstacles.

Overall planning and coordinated development. Strengthen overall planning and optimize the layout of energy storage projects. Attach importance to the coordinated development of upstream and downstream, and optimize the complete industrial chain from materials, components, systems, operations to recycling and reuse. Develop energy storage under the premise of ensuring safety, improve standards, testing and certification systems, and ensure product quality and orderly competition.

(3) Development goals

Relying on the advantages of clean energy gathering in our district, we will promote the development of the energy storage industry, and carry out the construction of energy storage facilities in Ningdong, Wuzhong, and Zhongwei regions where new energy is rich. Build a "new energy + energy storage" demonstration application project, and promote its application in the entire region; during the "14th Five-Year Plan" period, energy storage facilities shall be based on the principle of not less than 10% of the installed capacity of new energy and more than 2 hours of continuous energy storage. Configured year by year; explore the business model of energy storage facilities operation and cultivate a number of competitive market players; the development of the energy storage industry has entered commercial applications, and the key role of energy storage in the transformation of the energy system has become fully apparent.

2. Key tasks

(1) Strengthen unified planning. Following the principles of technical feasibility, economic rationality, safety and reliability, the overall planning and layout of energy storage facilities such as pumped storage and electrochemical energy storage will be carried out, supporting construction will be accelerated, and the coordinated development of grid-sourced-load storage will be promoted.

(2) Optimize the development model. Encourage power generation companies, power grid companies, power users, power storage companies, etc. to invest in the construction of energy storage facilities, encourage the use of multiple investment methods to build energy storage power stations; encourage new energy enrichment and grid transmission cross-section restricted areas, encourage new additions and stocks New energy projects will build energy storage devices, build grid-based regional shared energy storage facilities, and create a profit model for shared energy storage power stations. Optimize the regional energy storage development model for newly added new energy, adopt integrated development models such as "light storage", "wind storage", and "wind storage" to plan the layout of new energy in accordance with local conditions. The configuration of energy storage is a necessary condition for the priority development of new energy.

(3) Clear allocation principles. The energy storage configuration ratio of new energy projects is not less than 10%, and the continuous energy storage time is more than 2 hours. In principle, new energy storage facilities will be put into operation simultaneously with new energy projects, and the existing projects will be put into operation before the end of 2021. Starting from 2021, new energy companies that meet the above requirements will be given priority to obtain the right to develop wind and solar resources under the same conditions; for energy storage projects that meet the above requirements, support to participate in the power auxiliary service market.

(4) Promote demonstration projects. Encourage local cities and Ningdong Administrative Committees to vigorously guide social investment, test and demonstrate energy storage technologies, equipment and applications with industrialization potential, and vigorously promote energy storage technology and equipment research and development demonstration projects and "new energy + energy storage" integrated development demonstration projects .

(5) Establish a market mechanism. Encourage energy storage to participate in market transactions as an independent identity, incorporate electricity storage transactions into the current operating rules of Ningxia's power auxiliary service market, standardize transaction types, clarify price mechanisms, discover energy storage prices through the market, stimulate market vitality, and promote new energy consumption , To make up for the lack of peak shaving and promote the healthy development of the energy storage industry.

(6) Promote integrated development. Promote the diversified application of energy storage to support the demonstration of energy Internet applications, improve the informatization and management and control level of energy storage systems, and promote the in-depth integration and application of energy storage infrastructure and information technology. Related information is hierarchically connected to the control system and obeys the dispatch and management of the regulatory agency , Improve the efficiency of energy storage resource utilization.

(7) Improve the safety protection system. Strictly implement the relevant national regulations and requirements for production safety, establish and improve the safety prevention and control system for the entire process of energy storage application, clarify the subject of safety responsibility, subdivide the safety responsibility interface, and comprehensively improve the level of energy storage safety protection.

3. Safeguard Measures

(1) Strengthen organization and leadership. Establish a working group for promoting the development of the energy storage industry in the autonomous region, study and formulate plans and policies and measures to promote the development of energy storage, guide local areas to carry out pilot demonstration work, and promote the coordinated development of the upstream and downstream industrial chains of energy storage.

(2) Leading by overall planning. Systematically plan development plans and implementation rules for the construction of energy storage facilities, demonstration operations and promotion, strengthen the effective connection between special plans and territorial and spatial plans, improve the power grid's peak shaving capacity, and increase the utilization rate of renewable energy consumption.

(3) Strengthen policy services. Fully implement the national policy on supporting the development of the energy storage industry, and increase financial support for qualified energy storage construction and operation. Provide facilitation conditions and policy services for enterprises related to the energy storage industry chain in terms of project approval, tax reduction and exemption, land supply, and demonstration operation subsidies.